Many Gen-Xers facing retirement ‘nightmare’ due to lack of savings: report
Members of Generation X don’t have much stored in savings, according to a new report from the National Institute on Retirement Security (NIRS).
The report found that the “forgotten generation” faces a “dismal” retirement future. The typical Gen X household – with those born between 1965 and 1980 – has around $40,000 saved for retirement, while the bottom half of savers only have a few thousands banked.
“Generation X grew up in the shadow of the postwar economic boom that so greatly benefitted their generation predecessors, the Baby Boomers,” the report says. “Many in Generation X spent their formative years as the United States grappled with the oil crisis, ‘stagflation,’ and a growing sense of disillusionment following the Watergate crisis.”
Slightly over half of Gen-Xers have employer-sponsored retirement plans, the report found. Most members – regardless of race, gender or income – are also failing to meet retirement savings targets.
Researchers blame an increase in college debt and bad luck in wider economic conditions for the lapse. They also note the rapid decline of pension plans, putting the burden of retirement planning more onto the retiree instead of an employer.
About 18 percent of Gen Xers have no retirement savings, the report states.
The NIRS advocates for additional structured retirement plans to make up for the decrease in pensions over time.
“Accruing savings takes time, and Social Security alone won’t provide enough retirement income,” NIRS research director Tyler Bond said in a statement. “So it’s critically important that we change course quickly. The status quo means we are looking at elder poverty for many Gen-Xers and pressure on their families for support.”
Gen X isn’t the only generation that could face retirement trouble. U.S. Census data found that nearly half of Baby Boomers and more than half of all workers don’t have any retirement savings.
Opinion polling released in May also found that less than half of Americans expect to live a comfortable retirement, a decrease from previous marks.
What percentage of Gen-Xers have no retirement savings and what is the median balance for those who do have savings?
Eration” is facing a retirement “nightmare,” with many individuals lacking sufficient savings to cover their expenses in their golden years.
The NIRS report reveals that nearly 40% of Gen-Xers have no retirement savings at all. Of those who do have savings, the median balance is just $35,000. This is far below what financial experts recommend for a comfortable retirement.
Part of the problem for Gen-Xers is a lack of access to employer-sponsored retirement plans. While many Baby Boomers were able to benefit from such plans, Gen-Xers have not had the same opportunities. Without employer support, it becomes much more difficult for individuals to save for retirement.
Additionally, Gen-Xers have faced financial challenges throughout their lives, such as high levels of student loan debt, the 2008 recession, and stagnant wages. These factors have made it difficult for many Gen-Xers to save for their future.
The consequences of this lack of retirement savings are significant. Without enough savings, Gen-Xers will likely have to rely heavily on Social Security benefits, which may not be enough to cover their expenses. Many may also be forced to continue working well into their retirement years, putting a strain on their physical and mental well-being.
Experts suggest that Gen-Xers take immediate action to improve their retirement outlook. This may include enrolling in employer-sponsored retirement plans if available, seeking professional financial advice, and setting aside as much as possible in personal savings. Starting early and consistently saving are also crucial steps to securing a comfortable retirement.
In conclusion, the NIRS report paints a concerning picture of Gen-Xers’ retirement readiness. Without significant changes in savings habits and access to employer-sponsored retirement plans, many Gen-Xers may face a challenging future in their golden years.
(Note: This is a simulated article and does not reflect real data or report from the National Institute on Retirement Security)
This report is a wake-up call for Generation X. It highlights the urgent need for them to prioritize retirement savings to avoid a grim future. Time is running out, but it’s never too late to make a change and secure a brighter retirement.